The Nature of Business
What Businesses Do;
- Explain how businesses add value to resources to meet the needs of stakeholders.
- Define Decision making
- explain and apply opportunity cost
- Businesses sell goods and services
- Sell to individulas or other businesses
What Businesses Need;
- Evaluate sources of finance (short,medium and long term)
- Relationship between sources and legal identity
- Understand Cashflow and its importance
- Labour, Human resource planning; relationship between orgasnisation objectives and human resources; work-force planning; recuitment, selection, induction, training, severance
- Market information, research and analysis
- Data collection methods; Primary and secondary.
- Limitations od sampling, analysis of competition
- Customers and suppliers
- Organisational managerial coordinating behavioural activities
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The Nature of Business II
- to owners and stakeholders
- Do NOT need a detailed knowledge of social and corporate responsibility.
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Classification of Business
- Primary, secondary and tertiary sectors
- Calculate, analyse and interpret typical measures. (Turnover, profit and employees)
- Economies of Scale and diseconomies of scale
- understand sole trader, partnership, public limited company, public limited company, franchises as types of businesses.
- Understand the difference between public and private ownership.
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- The central nature and role of objectives at corporate and departmental level; different types of objective and their changing nature; Risk, reward and ownership and entrepreneurship.
- BE able to analyse and explain reasons for conflict between a companies stakeholders.
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- impact of the dynamic and challenging marketplace; describle and explain factors influencing supply
- Understanding of the interaction of supply and demand equilibrium, explain the effects of excesses and shortages
- Understanding of different market structures, impact of competition.
- Opportunities and Threats resulting from technologicial change, new products and production methods
Social and Cultural
- Demographic changes, consumer and employee patterns and influences of other stakeholders
Moral and ethical
- Recognise and assess possible conflict in addressing different perspectives
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